WEBVTT Saturday night the Iowa House of Representatives passed the last piece of legislation of the session, the Tax Reform bill. <:09:42:19 That this is something major whenever you take on the efforts of changing the tax structure here in the state of iowa 1:09:49:10> The bill passed 54 to 32. <12:10:15 the tax cut that passed out of the chambers this afternoon was passed entirely with republican support. Democratics and independents opposed the legislation 12:18:18> Opponents say it only favors the wealthy. <11:31:01 The top 4% of incomers in the state get 40% of the benefits 11:36:08> <09:13:08 It is a policy of trickled down economics that the republicans have been advancing for 30 years. That has proved not to be helpful 09:22:02> <11:36:08 the top one percent frankly split 88 million dollars among themselves next year and that is a huge giveaway in terms of resources that we don't know that will positively impact the economy> 11:49:24 But House Majority Leader Linda Upmeyer disagrees. <15:43:17 Let me say to begin with that we need to be clear, that anyone voting against that bill is saying they support a tax increase for iowans 15:53:15> In this bill - the federal deductability for Iowans doesn't begin until 2024. <15:52:20 because federal deductability in the framework of the federal tax cuts means Iowans are going to pay higher taxes, that's just a fact 16:04:08> Upmeyer insists this bill - will save Iowans money moving forward. <17:05:24 But for now we achieve the same thing with the tax cuts making sure it gets back into their pockets 17:10:17>

Iowa governor approves bill to cut $2.8B in income taxes

Share

Shares

Copy Link

{copyShortcut} to copy
Link copied!

Updated: 3:53 PM CDT May 30, 2018

HIAWATHA, Iowa (AP) —

Iowa income taxes will begin to fall under a tax bill signed into law by Republican Gov. Kim Reynolds.

Reynolds signed the bill Wednesday in Hiawatha. Under the law, the state will cut $2.8 billion in corporate and personal income taxes over six years if it meets certain revenue targets. If not, some cuts would be delayed.

Middle-class families are expected to save an average of $86 to $257 next year. A typical family of four would save about $7 every two weeks.

The legislation also expands sales tax to digital goods like e-books, subscription services such as Netflix, ride-sharing apps such as Uber and physical goods purchased online. Sales taxes are forecast to grow by $867 million over six years, but a forthcoming U.S. Supreme Court decision may affect Iowa's ability to collect the taxes.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)